Established in September of 2018, Pax Dollar functions as a fiat-collateralized stablecoin. These digital currencies aim to reduce price fluctuations by linking their value to a specific stable asset or a collection of assets. While some stablecoins are tied to cryptocurrencies, fiat currency, or even commodities, Pax Dollar focuses on lowering the price risk associated with blockchain transactions. The USDP tokens operate as ERC-20 assets on the Ethereum network and maintain a 1:1 collateralization ratio backed by US dollars stored in bank accounts owned by Paxos within the United States.

Pax Dollar was established by Charles Cascarilla and Rich Teo.

Charles Cascarilla serves as the CEO and co-founder of Paxos. Additionally, he is a founding board member of the Association for Digital Asset Markets (ADAM) and a partner at Liberty City Ventures. His background includes co-founding Cedar Hill Capital Partners, where he remains a partner. His prior roles encompass portfolio manager at Claiborne Capital Management, financial analyst at Goldman Sachs, and analyst at the Bank of America.

Rich Teo is the other co-founder of Paxos. Previously, he held the position of principal/senior Analyst at Cedar Hill Capital Partners. He also worked as a financial analyst at Citi and served as a combat signaler in the Singapore Armed Forces.

Pax Dollar functions as a stablecoin enabling users to swap U.S. dollars for Pax Dollar Tokens, aiming to stabilize the currency via blockchain technology. Paxos holds a charter from the New York State Department of Financial Services, permitting it to provide regulated crypto asset services. These tokens are backed by USD held in accounts at U.S. depository institutions. The asset was developed to enhance the broader financial system by establishing a seamless global network where digital assets move with speed, flexibility, and accessibility. According to Paxos, the objective is a future where securities, commodities, and digital assets can be transferred anywhere at any time.

Pax Dollar merges the steadiness of the U.S. dollar with blockchain efficiency. As a digital dollar, it shares traits with other crypto assets by allowing instant global transfers at any hour. It maintains stability through a 1:1 backing to the dollar and is issued by the Paxos Trust Company, ensuring that funds are regulated, audited, and carefully protected.

Pax Dollar (USDP) operates on the Ethereum blockchain, functioning identically to Ether or other ERC-20 assets. To redeem USDP, users send tokens to a Paxos-controlled address, where the tokens are destroyed and fiat currency is transferred to the user’s bank account. This public blockchain presence enables traders and exchanges to utilize USDP as a fiat alternative, allowing them to outsource banking needs to Paxos while facilitating easy integration with Ethereum-based applications.

In the event of a security threat, Paxos retains the ability to pause USDP transfers and approvals. This pausing capability is managed by a single owner role, similar to OpenZeppelin’s ownable model, and adheres to OpenZeppelin’s Pausable standard. By employing OpenZeppelin contracts, which provide tested smart contract libraries for Ethereum and other blockchains, risks are minimized. Additionally, Paxos holds a regulated trust status, granting it the legal authority to transfer assets and funds. Combining this regulatory permission with blockchain technology allows transactions to be executed rapidly, securely, and without risk.

You can buy, sell, and trade Pax Dollar (USDP) on a number of exchanges, including: